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  • 5. myDeductions

    The myDeductions tool is available within the ATO app and enables individuals to record, classify, upload and/or share the following deductible expenses via mobile devices (e.g. phones and tablets):

    • Work-related expenses
    • Gifts and donations
    • Cost of managing tax affairs.

    The main features include:

    • Capture photos of receipts for the deductible expenses as you go
    • Record work-related car trips via: GPS, point to point or Odometer (including ability to maintain a logbook).

    By offering this digital solution the aim is to improve the current customer experience for clients of tax agents managing work-related expenses while reducing the cost of compliance.

    Clients can share their data with their tax agent in two ways: uploading deductions directly to the ATO via authentication through their myGov account or by emailing a CSV file.

    Clients can upload data to ATO via authentication through their myGov account. The data will be available for agents to use via software that is standard business reporting enabled.

    Work-related car (D1) and work-related uniform (D3) data will be rolled up and presented as a single dollar value amount. Work-related travel (D2), self-education (D4), work-related other (D5), gifts and donations (D9) and cost of managing tax-affairs (D10) will be viewable at the individual transaction level, except where the number of transactions exceed the number of fields allowable in myTax. In this instance the data for each affected label would be rolled up and presented as a single dollar value amount.

    Tax agents can edit and alter figures within software.

    When a client sends CSV data file via email the data can be opened and edited via spreadsheet software. The data is presented at the individual expense and recorded car trip level of detail. Clients can also output and email a zip file of photos of receipts.

    Members discussed the integrity of entries that may be recorded by some clients and stressed this was a capture tool and not a final substantiation or verification service. Care is still needed to make sure expenses recorded are legitimate tax deductions.

    Tax agents represent a large proportion of the individual market that claim tax deductions for work related expenses. Members of this forum have been working with the ATO to provide advice and practical views on how to make the tool useful for clients and visible to the tax agent. Practitioners and professional associations have also shared their views on how the ATO might best communicate with the community (including practitioners) about the myDeductions tool.

      Last modified: 12 May 2016QC 48959